Fully automated high-tech convenience stores shape Korea's retail landscape

Fully automated high-tech convenience stores are reshaping the retail landscape in Korea, removing the need for human intervention as we shop.

A customer registers with an AI-based system at Emart24 [EMART24]

Fully automated high-tech convenience stores are reshaping the retail landscape in Korea, removing the need for human intervention as we shop.

At the entrance of these stores, customers scan a QR code to enter. The AI camera recognizes when a customer picks an item on the shelf. Simultaneously, the weight sensor follows the product's movement in real time. The most significant innovation lies in the automated payment system. Shoppers exit with their payment automatically processed when they leave with their chosen items through an exclusive exit. They even get a mobile receipt.

Such “smart” convenience stores, now accessible to everyone, are becoming an increasingly common sight as shops strive to enhance the retail experience.

GS25 opened its Gasan Smart branch near Gasan Digital Complex Station in southern Seoul on Thursday. It operates under a “take-and-go” system, with customers entering the store with a smartphone QR code and exiting with the selected items sans checkout.

The Gasan Smart branch integrates several cutting-edge technologies, including a QR code-based customer recognition system, AI cameras that analyze customer behavior and product info, high-precision weight sensors that track product movements, a cloud service that keeps track of the point of sales and an AI-based automated payment system.

“The store is accessible to everyone and sells 1,000 types of products, such as cigarettes, prepackaged meals and drinks,” a GS25 spokesperson said. “It is meaningful that the place opened near a station district with a high floating population.” Emart24 also operates a fully automated convenience store in southern Seoul, the Smart COEX branch, where chosen items are automatically paid for. However, it's located deep inside a shopping mall, reducing accessibility.

Last month, Emart24 upgraded the store by introducing “one-stop gate” technology, improving the entrance's accessibility. Previously, customers had to verify their credit card and scan the QR code sent to their phone to enter, taking an average of 15 to 20 seconds. That time has been halved as customers can enter by verifying their credit card.

CU operates four fully automated convenience stores with face verification systems. If the customer registers, they can access the store, and their payment is processed without the need of a smartphone from your next visit. CU also has 400 hybrid convenience stores that operate automated only at night. Hybrid convenience stores recorded a 15 to 20 percent revenue increase by extending their operation hours.

7-Eleven has operated its DX LAB store with face verification since 2021.

“We are trying to apply more advanced technology so that store owners can operate their stores more efficiently and for customers to have new shopping experiences,” said an industry insider.

BY CHOI SU-NEUL, KIM JI-YE [kim.jiye@joongang.co.kr]